PT Newmont clarifies

The characterization of the PT Newmont Nusa Tenggara (PT NNT) tailings pipeline leak that appeared in the Jan. 25, 2001, edition of The Jakarta Post might lead your readers to believe that the company is trying to minimize the importance of the event and has no plan to deal with the problem. Any portrayal of the events of Jan. 22, 2001, as such is not correct.

The leak that occurred in the tailings pipeline may not have been large, but it was a serious event that resonates in the local communities. As such, one of the first actions the company took when the leak occurred was to gather the leaders from the local community and take them to the site of the leak so they could physically see the repairs going on while they received a briefing on the event. Additionally, the company representatives held the tailings materials in their hands and demonstrated that the tailings are nontoxic in order to dispel rumors to the contrary.

For the benefit of your readers, the fact of the incidents are as follows. Between 2 p.m. and 2:15 p.m. on Jan. 22, a two- centimeter wide leak occurred in the tailings pipeline causing some 10,000 liters of seawater and ground rock (called tailings) to spill into the pipeline's spill containment area. The leak was reported shortly after one of the hourly physical checks of the pipeline that our company conducts. Once spotted, the pipeline was shut down to facilitates repairs. The repairs were completed within four hours.

While the leak was not welcomed by PT NNT, it has been anticipated and planned for. Since conducting line tests after a similar leak in early November, the company has known that several lengths of pipe had a defective rubber lining allowing the seawater inside the pipe to corrode the steel pipes' outer shell and produce small leaks. PT NNT has ordered replacements and has been waiting for the manufacturer to ship replacements for those sections where problems have been identified. All of the defective sections are in the onshore section of the tailings pipeline and will be replaced by March, when the new pipe sections will be delivered by the manufacturer. Until then, the company will maintain its constant monitoring of the pipeline to minimize any possible impact of such leaks.

A leak in our tailings line is a serious issue that the company shared with the communities surrounding the mine so that they could understand exactly what happened. No doubt there will be people who seek to take advantage of the incident to twist the facts and manipulate the emotions of the general public. We hope that by fully disclosing the details of the leak and the company's subsequent actions to the local communities and the general public that we can avoid any confusion or misrepresentation of the event. We also hope that the public understands how concerned we are about respecting their rights to be informed about the functioning of the major development project operating in their midst.

EDWARD PRESSMAN

Director of Technical Affairs

PT Newmont Pacific Nusantara

Jakarta